The property development and banking units of the SM Group posted double-digit growth in net income in the first half on the back of strong revenues amid the reopening of the economy.
SM Prime Holdings Inc. said Monday net income climbed 21 percent in the first six months to P14.1 billion from P11.6 billion in the same period last year, while BDO Unibank Inc. said profit rose 12 percent to P23.9 billion from P21.4 billion on strong results across core businesses.
SM Prime said in a disclosure to the stock exchange first-half revenues climbed 13 percent to P46.3 billion from P41.1 billion a year earlier. Consolidated operating income increased 33 percent to P21.4 billion from P16.1 billion.
“The growing domestic demand over the past period kept SM Prime’s financial growth steady as reported in our first half of 2022 results,” SM Prime president Jeffrey Lim said,
“We are optimistic that despite the global economic slowdown, the local economy will continue to benefit from the sustained growth in remittances from overseas Filipino workers, the business process outsourcing industry as well as the increase in local travel and tours activities,” Lim said.
It said the Philippine mall business’ revenues, which accounted for 44 percent of consolidated revenues, surged 92 percent to P20.6 billion in the first six months as the more relaxed community quarantine in major key areas boosted rental revenues and cinema and event ticket sales.
Residential sales declined by 25 percent in the first half to P18.2 billion from P24.5 billion in the same period last year. Reservation sales grew 8 percent to P59.4 billion, or equivalent to 12,327 units.
SM Prime’s other key businesses, which include offices, hotels and convention centers, recorded a 49-percent growth in revenues to P4.5 billion in the first half from P3.0 billion in the first half of 2021.
Meanwhile, BDO said its established business franchise, healthy capital position and sustainable earnings performance reinforced the bank’s resilience against prevailing macro headwinds and put it in a good position to capitalize on the country’s structural opportunities for long-term sustainable growth.
Customer loan portfolio went up by 9 percent in the first half, funded by an 11-percent rise in CASA (current and savings account) deposits which now comprise 85 percent of total deposits.
Non-interest income expanded to P34.3 billion, lifted by the strong expansion in fees and insurance premiums. “Pre-provision operating profit was up to P39.2 billion reflective of the strength of core income sources amid tempered rise in OPEX [operating expenses],” it said.
Asset quality sustained its improvement as the non-performing loan ratio went down to 2.39 percent in the second quarter from 2.72 percent in the first quarter and 3.12 percent a year-ago.
The bank said it continued to roll out new digital capabilities and self-service technologies across branches to make banking services more accessible, easier to use and operationally efficient.